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Student Credit Card denied

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Regular Contributor

Student Credit Card denied

Hi Guys,

 

Need some help here.

 

I recently applied for a secured student credit card with Capital One for my daughter who will be starting college next week and she was denied.

 

We got the letter today from Capital One and the reason for denial was the following

 

Credit Bureau is missing and unavailable from Equifax, Experian and Transunion.

 

This will be her first credit card and she has no credit.

 

Should I just add her to my card as an additional user?

 

Thanks

 

Ed

Message 1 of 20
19 REPLIES
Mega Contributor

Re: Student Credit Card denied


ineedcreditbad wrote:

Hi Guys,

 

Need some help here.

 

I recently applied for a secured student credit card with Capital One for my daughter who will be starting college next week and she was denied.

 

We got the letter today from Capital One and the reason for denial was the following

 

Credit Bureau is missing and unavailable from Equifax, Experian and Transunion.

 

This will be her first credit card and she has no credit.

 

Should I just add her to my card as an additional user?

 

Thanks

 

Ed


Possible she has no FICO score, the bolded would be a good start for her for 6 months.

 




EQ FICO 548 3/3/16
Message 2 of 20
Super Contributor

Re: Student Credit Card denied

Definitely worth a try to add as an AU. 

 

Capital one also denied me for their secured card, but then around 8 months later (still with no credit cards yet) they sent me an offer for their platinum card and approved me. They work in mysterious ways.

 

An AU will definitely help her out a little bit, but remember she gets all the history (any late payments, or other negatives on the account too) so make sure you add her to the card with the least negatives, if you have any at all. If you don't then disregard this whole statement. Smiley Very Happy 

Message 3 of 20
Contributor

Re: Student Credit Card denied

If she has a checking account you could try getting her a credit card from the bank she uses. One with no af that is.

Amazon Store Card ($6000) Amex BCE ($10000) Amex PRG (NPSL) BofA Better Balance Rewards ($3000) Best Buy Store Card ($5000) Chase Freedom ($2500) Chase Sapphire Preferred ($7900) Citi Prestige ($5000) Discover It ($10500) Walmart Discover ($6000) Wells Fargo CB ($4700)
Message 4 of 20
Frequent Contributor

Re: Student Credit Card denied

Here is an option:

 

Have her open a checking account with a bank that has secured credit cards. When you do this, there is no  pull on credit report required what so ever, you just give them the amount you want to use from  checking and they hold it in a cd for you until  you decide to cancel your care, and you're off to begin creating a credit history.

 

Additionally a department store card is another great way for her to build credit when she has none.

Message 5 of 20
Frequent Contributor

Re: Student Credit Card denied

adding her as an AU is a start. Do you bank with any credit unions?

Lender pulled 10-10-13
EQ Fico 715 | EX Fico 714 | TU Fico 703
Message 6 of 20
Frequent Contributor

Re: Student Credit Card denied

Don't most AU's fall under the liability of the card holder themselves? I don't believe the AU is granted any credit worthiness as an AU, only the cardholder, it's an extension of their credit for someone to use.

Message 7 of 20
Super Contributor

Re: Student Credit Card denied


angelclaudio wrote:

Here is an option:

 

Have her open a checking account with a bank that has secured credit cards. When you do this, there is no  pull on credit report required what so ever, you just give them the amount you want to use from  checking and they hold it in a cd for you until  you decide to cancel your care, and you're off to begin creating a credit history.

 

Additionally a department store card is another great way for her to build credit when she has none.


Most banks do pull credit for secured cards. I was denied for a secured card myself, only one I know of that does not pull is SDFCU which is a CU. 

 

 

Also AUs recieve all the history of the card, good and bad, so long as the card reports the AU account (some do not, most of the big names do though). 

Message 8 of 20
Established Contributor

Re: Student Credit Card denied


angelclaudio wrote:

Don't most AU's fall under the liability of the card holder themselves? I don't believe the AU is granted any credit worthiness as an AU, only the cardholder, it's an extension of their credit for someone to use.


This is incorrect. Many (not all) credit issuers report authorized users to credit reporting agencies. When an issuer reports to the authorized user's credit report, it often brings with it the entire card history. For example, I am an AU on one of my wife's cards. She has had the card since 1996, has a 16k limit and rarely uses it. We keep our finances separate, so this provides a way for me to make a purchase on her behalf if she is not available to do so. When this card began reporting on my credit report, I gained 16 years of spotless history and a drop in utilization due to the high credit limit. OTOH, she is an AU on my amex hilton surpass. While it does appear on her credit report, it only displays a history from the month she was made an AU (this is only an issue with Amex). 

 

Several years ago, the CRAs tried to stop reporting authorized users and got pressured by the government and women's advocacy organizations to reverse their stance. The reason is that for many non-working spouses (usually women), the only way for them to establish credit is as an authorized user. 

 

To the OP, I think making your daughter an AU is a great way to help her establish credit. That being said, there is no reason to physically give her the card. Also, make sure her address listed in her application is the same as yours. 

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Message 9 of 20
Frequent Contributor

Re: Student Credit Card denied

So with AMEX she won't get the AAoA, but she will start getting credit history for using the card from there on out suppose if it was an AMEX is this correct? That is amazing how on another credit card you all of sudden get 16 years of history, seems a bit like cheating lol.

Message 10 of 20